EMI Calculator India 2026

EMI (Equated Monthly Installment) is the fixed monthly payment you make to repay a loan. It includes both principal and interest. Formula: EMI = P × r × (1+r)^n / ((1+r)^n – 1), where P = principal, r = monthly interest rate, n = number of months.

For a ₹50 lakh home loan at 8.5% p.a. for 20 years: r = 8.5/12/100 = 0.00708, n = 240. EMI = 50,00,000 × 0.00708 × (1.00708)^240 / ((1.00708)^240 – 1) ≈ ₹43,391 per month.

Flat rate calculates interest on the full principal throughout. Reducing balance (used by most banks) calculates interest only on the outstanding principal, resulting in lower total interest cost. Always prefer reducing balance loans.

Prepayment reduces your outstanding principal, which reduces either EMI amount or loan tenure. Most banks allow partial prepayment. Even a single prepayment can save significant interest over the loan tenure.

Longer tenure = lower EMI but higher total interest paid. Shorter tenure = higher EMI but lower total interest. Choose a tenure where EMI is under 40% of your monthly income for comfortable repayment.

Home loan rates in India range from 8.35% to 9.5% p.a. (2026). SBI offers from 8.5%, HDFC from 8.7%, ICICI from 8.75%. Car loans range from 7.5–9%, and personal loans from 10–24% p.a.